ACADEMIC RESEARCH IN MODERN SCIENCE
International scientific-online conference
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INVALIDITY OF TRANSACTIONS IN CIVIL LAW AND ITS LEGAL
CONSEQUENCES
Sarsenbaeva Ellada Tengelbaevna
Student of the Faculty of Law, Karakalpak State University
https://doi.org/10.5281/zenodo.15286859
Introduction.
According to Article 101 of the Civil Code of the Republic of Uzbekistan (CC), the
actions of individuals and legal entities aimed at establishing, modifying, or
terminating civil rights and obligations are considered transactions.
Transactions represent the most common legal facts in civil circulation and
serve as the primary means for the emergence, alteration, and termination of
property and related non-property personal relations [1]. Civil legislation is
based on the principle of freedom of contract, and this freedom is limited
precisely by the requirements of the law.
1. Invalid Transactions: Concept and Types
An invalid transaction is one that does not meet the legal requirements of
validity—such as subject, subjective element, content, and form—and therefore
does not lead to the legal consequences intended by the parties [3]. According to
Article 113 of the Civil Code (CC), invalid transactions are classified into two
types:
Void transactions (ipso jure): Transactions that are considered invalid
from the moment of their conclusion without the need for a specific court
decision (e.g., those that violate legal requirements, are concluded by an
incapacitated person, or are sham transactions).
Voidable transactions: Transactions that may be declared invalid by a
court based on the claim of a person defined by law (e.g., transactions made
without consent by a person with limited legal capacity, or those concluded
under mistake, fraud, or coercion).
Such transactions may have legal force until a court decision enters into
legal effect.
From a theoretical perspective, this classification is intended to distinguish
the legal consequences of invalid transactions. However, some academic sources
argue that the practical significance of this classification is insufficient, as
disputes involving void transactions often also require resolution through
judicial proceedings. This highlights the need for further clarification of
legislative norms or the unification of judicial practice.
2. Grounds for the Invalidity of Transactions
According to the Civil Code, a transaction may be deemed invalid under
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various circumstances. These include transactions that violate legal
requirements, fail to adhere to the prescribed form, or are concluded for
purposes that contradict moral standards and public order. Additionally, sham
transactions (made without intent) and simulated transactions (intended to
conceal another agreement) are also considered invalid. Transactions concluded
by individuals under the age of fourteen or those declared legally incapacitated
are likewise invalid. Furthermore, transactions carried out without the consent
of parents or guardians by persons who legally require such consent do not have
legal force. In cases where a person, due to a mental condition, was unable to
understand or control their actions at the time of the transaction, such
transactions are considered voidable.
Furthermore, transactions concluded under mistake, fraud, coercion,
threats, extreme circumstances, or through bad-faith collusion involving a
representative of one of the parties are also considered voidable and may be
declared invalid based on the claim of the aggrieved party. Transactions
concluded by a legal entity in contradiction to its statutory purposes or within
unlicensed areas of activity may likewise be deemed invalid. Due to varying
interpretations in judicial practice, there is a recognized need to clarify certain
legal criteria in such cases.
3. Legal Consequences of Invalidity
According to Article 114 of the Civil Code, an invalid transaction, as a
general rule, does not produce legal consequences from the moment it is
concluded. The main legal consequences include the following:
Bilateral restitution:
Each party is obligated to return everything
received under the transaction to the other party—either in its original form or
by paying its equivalent value in money [2]. This is the general rule applied to
most grounds for invalidity.
Compensation for damages:
In certain cases, beyond the standard
consequences of invalidity, the party at fault must compensate the other party
for the actual damage caused (e.g., under Articles 117, 119, and 123 of the Civil
Code). If the invalidity resulted from the deliberate misconduct of the party, the
court may also order the recovery of lost profits (Article 114).
Conclusion
The institution of transaction invalidity serves as an important legal tool for
ensuring the stability of civil turnover and protecting the rights of its
participants. The Civil Code of Uzbekistan provides a systematic framework for
the grounds and consequences of invalidity. However, the lack of clarity
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surrounding certain concepts (such as “moral foundations,” “minor household
transaction,” and “material mistake”), the insufficient regulation of certain
procedural issues (such as the obligation to appoint expert examinations), and
the undifferentiated approach to limitation periods pose practical challenges
and highlight the need for further legislative improvement [1]. Harmonizing
judicial practice through the decisions of the Plenum of the Supreme Court and
incorporating the results of academic research into legislation will contribute to
the effective functioning of this legal institution.
References:
1.
Koryog'diyev, B. U. (2021). Bitimni haqiqiy emas deb topish va uning
oqibatlarini qo‘llash fuqarolik huquqlarini himoya qilish vositasi sifatida.
Toshkent davlat yuridik universiteti. https://doi.org/10.24412/2181-1784-
2021-11-211-225
2.
O‘zbekiston Respublikasining Fuqarolik kodeksi (birinchi qism). Lex.uz.
https://lex.uz/docs/-111189
3.
Usmonova, M. Y. (2024). Nizoli va o‘z-o‘zidan haqiqiy bo‘lmagan bitimlar:
yangi
klassifikatsiya.
Toshkent
davlat
yuridik
universiteti.
https://www.researchgate.net/publication/387847979_DISPUTED_AND_VOID_
TRANSACTIONS_A_NEW_CLASSIFICATION
